The current Federal Reserve interest rate, or federal funds rate, is 3.75% to 4.00% as of Nov. 2, 2022. This is the fourth consecutive rate hike of 0.75% and the sixth rate hike this year. These rate hikes are the fastest cycle in history, pushing borrowing costs to a 15-year high.
The Fed has struggled to reduce inflation. The annual inflation rate in Sept. 2022 was 8.2%, after rising 8.3% previously, according to the U.S. Labor Department. According to its recent statement, the Fed is committed to bringing inflation down to 2%. "We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%," stated Jerome Powell, the Fed Reserve Chairman.
During the pandemic, inflation hit close to 0%. Inflation quickly rose, hitting 5.4% one year ago and peaking at 9.1% in June 2022. Even with the interest rate hikes, inflation only dropped to 8.3% in August.
The Fed has struggled to reduce inflation. The annual inflation rate in Sept. 2022 was 8.2%, after rising 8.3% previously, according to the U.S. Labor Department. According to its recent statement, the Fed is committed to bringing inflation down to 2%. "We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%," stated Jerome Powell, the Fed Reserve Chairman.
During the pandemic, inflation hit close to 0%. Inflation quickly rose, hitting 5.4% one year ago and peaking at 9.1% in June 2022. Even with the interest rate hikes, inflation only dropped to 8.3% in August.